Bitcoin rose to a record high of $98,342 on Thursday, approaching the symbolic $100,000 level, driven by optimism over President-elect Donald Trump’s support for cryptocurrencies and expected regulatory shifts in the United States.
The largest digital asset rose 4.1%, trading slightly between $98,000 and $99,000 by early afternoon in New York on Thursday. The cryptocurrency market has added $900 billion in value since Trump won the election on November 5.
In order to boost investor confidence, the current Chairman of the US Securities and Exchange Commission, Gary Gensler, announced his plans to step down on January 20, coinciding with Trump’s inauguration. Gensler’s tenure has been marked by aggressive enforcement actions against the cryptocurrency industry, but the incoming Trump administration is expected to ease regulatory pressures.
Discussions are reportedly underway within Trump’s transition team about creating a position in the White House dedicated to digital asset policy, suggesting the potential for more robust government involvement in cryptocurrencies. Supporters hope the position will have direct access to the president-elect, who has emerged as a prominent supporter of digital assets.
Adding momentum to Bitcoin’s rise, MicroStrategy Inc., the largest publicly traded holder of Bitcoin, announced plans to accelerate purchases of the token. The company increased its sales of convertible securities to $2.6 billion, boosting its Bitcoin reserves, which are now valued at about $31 billion.
Market analysts remain optimistic, with some predicting that it is only a matter of time before Bitcoin crosses the $100,000 threshold. “Buyers are choking sellers…demand appears to be insatiable,” commented Tony Sycamore, market analyst at IG Australia Pty.
The rise also coincides with the emergence of options on US bitcoin exchange-traded funds, adding liquidity and confidence to the market. Bitcoin’s rise to nearly $100,000 is seen as a significant moment for the cryptocurrency, cementing its status as a modern-day store of value despite persistent doubts about its links to money laundering and crime.